DBRS Finalizes Provisional Ratings on Freddie Mac Structured Pass-Through Certificates, Series K-038

DBRS has today finalized the provisional ratings on the following classes of Structured Pass-Through Certificates, Series K-038 (the SPCs), issued by Freddie Mac Structured Pass-Through Certificates, Series K-038. The trends are Stable.

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class X1 at AAA (sf)

The SPCs represent a pass-through interest in certificates issued by FREMF 2014-K38 Mortgage Trust, Series 2014-K38. Please see the presale report for FREMF 2014-K38 Mortgage Trust, Series 2014-K38, for more information regarding the underlying certificates.

Freddie Mac guarantees: (1) timely payment of interest; (2) payment of related principal on the distribution date following the maturity date of each mortgage loan to the extent such principal would have been distributed to the underlying Class A-1 and Class A-2 certificates; (3) reimbursement of any realized losses and additional trust fund expenses allocated to the Underlying Guaranteed Certificates; and (4) ultimate payment of principal by the assumed final distribution date for the underlying Class A-1 and Class A-2 certificates. All classes will be subject to ongoing surveillance, upgrades or downgrades by DBRS after the date of issuance. The ratings assigned by DBRS at issuance are based exclusively on the credit provided by the transaction structure and underlying assets of the FREMF 2014-K38 Mortgage Trust, Series 2014-K38, without regard to the Freddie Mac Guarantee. DBRS may take the Freddie Mac Guarantee into consideration for future rating actions.

Notes:
The applicable methodology is CMBS Rating Methodology (January 2012), which can be found on our website under Methodologies.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The Rule 17g-7 Report of Representations and Warranties is hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The full report providing additional analytical detail is available by clicking on the link under Related Research at the right of the screen or by contacting us at info@dbrs.com.